This comes with a monthly fee though, so why have that recurring revenue drain when you can just get MS or LTP for that matter on a one off fee. They are both virtually the same in my opinion. This is the only thing that is stopping me from buying the software. If the calculation of keyword difficulty was included in the one off fee, i wouldn’t mind paying the full $97.
Repeat this exercise for as many topic buckets as you have. And remember, if you're having trouble coming up with relevant search terms, you can always head on over to your employees on the front lines -- like Sales or Services -- and ask them what types of terms their prospects and customers use, or common questions they have. Those are often great starting points for keyword research.
For example, assume your search ad generated 5,000 impressions in one day, of which 100 visitors have come to your site, and three have converted for a total profit (not revenue!) of $300. In this case, a single visitor for that keyword is worth $3 to your business. Those 5,000 impressions in 24 hours could generate a click-through rate of between 18-36% with a #1 ranking (see the Slingshot SEO study for more on potential click-through rates), which would mean 900-1800 visits per day, at $3 each, or between 1 and 2 million dollars per year. No wonder businesses love search marketing!
The final sales price was based on a multiple of trailing 12 months net income (i.e. The average net income over the most recent 12 months). I feel like I got a very good multiple. I had talked to the brokers at FEinternational, Quiet Light Brokerage, and had viewed sale history of other similar companies, so I know the price I received was very competitive.
Long Tail Pro is a keyword research tool. Keyword research helps you find exact keywords that people are actually searching for. Some keywords are high competition (meaning it is harder to rank for on your site) and some have lower competition (easier for you to rank). How does Long Tail Pro work? First it finds the actual keywords for you based on the ‘seed keywords’ that you input. Then it helps you analyze the competition to see which keywords will be harder or easier for you to rank. How does this benefit you? You can take those ‘easier to rank’ keywords and use them in your content to increase search engine traffic to your site.
Before you can put it to use and start making Long Tail Pro pay for itself, you first need to understand exactly what Long Tail Pro does and how it will benefit you. The number one benefit and feature of Long Tail Pro is that it helps you analyze the competition in Google much faster and more effectively than if you tried to do it only using free tools.
I want to share how and why I sold the company in order to both educate and inspire potential software entrepreneurs. I certainly don't know everything and obviously companies sell for much more than I sold Long Tail Pro for (I won't be featured in Tech Crunch anytime soon); however, I'm willing to share what I have learned and hopefully that can be beneficial to a few of you.